Monthly Archives: December 2013

Bitcoin 2.0

For now, the negatives outweigh the positives with regards to alternative digital currencies. The need for anonymous criminal cash transactions will always lead and supersede those of legitimate business commerce.  The criminal element contains a constant element of desperation. Desperate people will always forgo legal boundaries if their need is great enough.

Bitcoin suffers from its ability to move vast amounts of cash. It is this capability that lures nefarious activity. If an alternate currency were to be offered that limited this capability then the considerable benefits of using digital currency could be employed. Bitcoin’s use as a means of exchange – in limited monetary transactions – is its biggest draw. Paying for coffee, dinner, movies, etc. via instant electronic transfer, anonymously, increases our personal information security, reduces identity theft and removes institutional banking from the money minutia of everyday living. It looks like the most deleterious use of BTC is its ability to move large quantities of cash. I would wager that 99% of users would never use BTC in this way. That they would use it as a means of daily, limit, economic exchange.

But how to limit Bitcoin’s or its successor’s huge money moving capability?

Bitcoin 2.0 cannot completely eliminate such capability. But like the mining of bitcoin, BTC 2.0 could make it increasingly arduous to transfer larger and larger quantities of BTC.

• Limit accounts/addresses/keys per IP.
• Limit transactions per account/address/key, 10 per day.
• Limit transaction sizes (10% of the 10 year moving average price of gold).
• Throttle transaction throughput by transaction size, the smaller the faster.
No doubt other ways to build in constraints can be thought of.

Reducing the laundering capability yet increase the utility of digital currencies is a worth endeavor. Money need not only be comprised of dollars and cents.

 


Amazon’s Prime Air – no thanks

 Security and safety vs spoofing and terror. How long before terrorists deliver an unrequested package via drone? Fedex, UPS, USPS have considerable proof of transit from warehouse to doorstep. An anonymous (but prettily painted) drone comes out of nowhere and leaves a multiple pound item on your front lawn with no verifiable source, no truck or human to track, not the slightest guarantee that this package has come from where you think it came from. Why are there no public rubbish bins in London? Why can you not leave your travel cases and packages unattended in any public transit center? I’m no Luddite, I’m just pointing out my first reaction to seeing an unmanned flying device leave a yellow package on my front porch.